In 2019, connected TV advertising and OTT advertising surpassed mobile in serving up digital impressions. Programmatic connected TV advertising can make a measurable impact on your Return on Ad Spend (ROAS) and brand growth. From food and beverage brands targeting a majority female audience to an automotive dealership group seeking quality sales leads, connected TV advertising can improve your conversions.
Since video streaming services and connected TV are crushing pay-TV, connected TV advertising platforms will continue to gain notoriety for growing brands. As the streaming boom begins to settle down, there are many myths about connected TV advertising and OTT advertising.
Here are eight myths about connected TV advertising:
Myth #1: Connected TV advertising and OTT advertising are the same
Although connected TV and OTT are often both used to discuss connected TV advertising, they are not the same thing. A connected TV is a device, OTT (over-the-top) is a term to describe how videos or ads reach customers. Before connected TV, shows were available from the TV networks online.
OTT refers to watching shows without using a cable or satellite TV box, or over the internet. If you are streaming Netflix through a mobile app, you are watching content OTT on the phone or tablet. A connected TV, such as a Samsung Smart TV, also allows you to stream content through different platforms such as Netflix, Hulu, or others.
Myth #2: Connected TVs Currently Offer Limitless TV-Quality Inventory to Marketers and Advertisers
There are many different apps available in the connected TV realm. Netflix, Amazon Prime Video, Hulu, and YouTube account for seventy-five percent of the time people spend streaming content on their connected TVs. Half of these apps, both Netflix and Amazon Prime Video, do not show advertisements. Hulu and Youtube do show ads, but they have ad-free subscription options available in addition to their standard ad-supported services.
“Connected TV advertising platforms are an excellent way for a brand to deliver an excellent return on their ad budget. However, there is still a growing pool of truly ad-supported opportunities. It is critical to partner with a flexible platform that can connect you to leading media solutions to deliver the best results.” Andison Flores, Co-Founder, and President, Moblyft
Myth #3: Connected TV advertising is inexpensive
In the age of digital, a myth has gained traction that advertising on a shoestring budget is ideal. Although there is something to be said for social media marketing and other more inexpensive ways of promoting a brand, air time has always cost money. Connected TV inventory has a price that is comparable to linear TV. The connected TV and OTT advertising space has slowly been maturing over the past couple of years. Digital media buys hovered around $19.84 to $28.33 for about an average of $20 CPMs.
“Most people balk at the idea that a digital platform would cost as much as its more traditional counterpart. The reality is that because of the higher returns, although the price may be similar, the advertising itself is less expensive.” Alex Mersen, Account Executive, MobLyft
Myth #4: Any Platform Can Track Connected TV Ads
Due to the cookie-less nature of connected TVs, measuring and optimizing media impact is not as simple as it sounds. Tracking limitations cause issues for traditional digital advertising go-to strategies such as using third-party data for ad targeting and frequency capping. Our platform tracks the impact of your campaigns on real sales results by seamlessly connecting to measurement tools like Placed, SambaTV, Ninth Decimal, and many others.
Myth #5: Connected TV advertising Inventory is Video Only
The majority of connected TV ads are pre-roll and mid-roll ads that stream through connected TVs, however, there is another form of inventory available. When a user is connecting to a streaming app or connected TV, the entire experience is available for advertising. Many different smart TVs have a home screen, which can be used for advertising as well. The key is to not think within the bounds of previous digital advertising.
With advances in digital marketing, you no longer have to wait for your customers to log in to a particular application or pass by a specific website. You can take your content to the next level with addressable geofencing. When working with us, you can target up to one million physical addresses to ensure your content reaches the right audience. Get the most out of your media mix with connected TV advertisements.
Myth #6: Programmatic TV Advertising Does Not Have High-Quality Inventory
There are plenty of advertising technology companies that have been laying the groundwork for connected TV inventory and programmatic TV advertising. Large TV networks and other publishers recently started offering programmatic connected TV advertising.
What is another reason why working with MobLyft can change the game for your ability to participate in connected TV advertising and OTT advertising?
Many TV networks only allow programmatic connected TV advertising through private marketplaces. In open programmatic markets, sometimes the higher-quality inventory may not be available to protect television networks from lower-quality or fraudulent content. To gain access to this inventory, keep a data-driven connected TV advertising platform like MobLyft at your side. We know where you can purchase high-quality opportunities that will make the most significant difference to your brand.
Myth 7: Connected TV advertising is too new for spammers and fraud
Unfortunately, as the digital era ushers in new and innovative opportunities for companies to connect to their target audiences, it also welcomes fraudulent and unethical behavior. Connected TV is an immature market, so advertisers and marketers need to exercise caution when selecting a connected TV advertising platform. There are many untrustworthy companies out there that will charge for impressions that are not seen by customers. Nearly twenty percent of the connected TV ad impressions generated globally within the United States were considered fraudulent by the fraud prevention firm Pixalate. There are many different opportunities for untrustworthy companies to defraud consumers.
Due to the nature of connected TV advertising platforms and the unrealized potential of the market, working with a connected TV advertising platform that you can trust is extremely important. At MobLyft, we take the utmost pride in the accuracy and relevancy of our data. We work with you to make sure you understand the ins and outs of how you spend advertising dollars. We make sure you get data-driven and measurable results that make an impact on your brand.
Myth #8 You Do Not Need Connected TV Advertising
When the wave of social media hit, there were plenty of companies that through it was a passing craze. Social media marketing was not a passing craze. Instead, it was a revolution in how we do business. Digital advertising has evolved significantly in the last twenty years, and it will continue to grow and change. Many missed the social media boom and are struggling to catch up. Connected TV advertising is in its infancy, which means that for every roadblock to adoption comes an excellent opportunity for making a significant impact on your brand’s success.
Including Connected TVs in Your Advertising Mix
Smart TVs have been on the market for some time now, but adoption rates have skyrocketed in recent years. Trends do not care who they leave behind. Marketers will have to incorporate connected TVs into their budgets to avoid late adoption. As consumers continue to move away from traditional television and into streaming products, connected TV advertising platforms will become essential to the success of every brand and company in the market. Right now, the number of connected TV users in the United States is 182.6 million, which is a little over half the country’s population.
According to an eMarketer forecast, the number of Smart TVs will rise to 204.1 million by 2022. That is over sixty percent of the people in the United States! As connected TVs begin to appear in advertising budgets, marketers will need to learn how to allocate resources to make a substantial impact.
Identifying Your Market and Target Audience
Similar to any other advertising and marketing strategy, you need to know your target audience and focus market.
Questions to Ask
Where is the majority of your brand’s audience located?
How does that intersect with markets with the best available connected TV inventory?
Although most likely, you will be able to answer the first question, a brand representative or marketer requires the guidance of a connected TV advertising platform to determine where to purchase inventory for their market, as well as how to reach their target audience with connected TV advertising.
Currently, audiences aged 18-35 are the hottest consumer base for OTT. The majority of users in this age range consumes a large amount of content, especially live stream, and has a high engagement rate with ads.
Develop Awesome Content
Questions to Ask
What is the purpose of this content?
How will the tone of the content enhance my message?
Customers interact with each platform in different ways. The content needs of customers are always changing and shaping advertisement to each platform is a vital part of advertising on OTT platforms. A connected TV advertising platform should connect you with your target consumers and guide your content strategy to ensure it resonates with your customers.
What is the Future of Connected TV advertising?
We understand that having buy-in from marketers is not enough. There has to be enough room in the ad budget to justify changes in strategy. Connected TV advertising and OTT advertising will continue to grow. they will naturally become a regular part of the advertising spend of every company, just as social media marketing went from nonexistent to essential
For any marketer that wants to be ahead of the trend, there needs to be some wiggle room leftover in the budget for iteration, innovation, and strategy pivots. Challenges and setbacks exist with every new form of technology, but early adopters get the proverbial worm. It is no longer enough to reinforce the status quo or continue to keep advertising strategies as is. To get ahead, marketers must welcome new ways of engaging with customers and measuring consumer behavior.
How to Be a Stand Out Marketer
We all want to crush it. Instead of spending your days dreaming about putting your brand on the next level and hustling with the same tired strategies as every other company, do better. Leap and try something new. Join our growing customer base in generating mass brand awareness, creating “smart segments” of your target audiences, and leading campaigns that work. We hope these connected TV advertising myths bring some clarity to the industry for you.